Long term care insurance offers ways to help keep pace with inflation

April 10, 2012

Employees who decide to participate in Purdue's new long term care (LTC) insurance benefit will choose an inflation protection option when they enroll. The initial enrollment period ends April 30.

The LTC insurance benefit offers two ways to hedge against inflation:

* Automatic benefit increase rider: Coverage increases 3 percent or 5 percent each year, depending on the option selected. The premium is based on the person's age when coverage begins and remains the same over time, even as the amount of coverage goes up each year and the person ages.

* Future purchase option: Offers the opportunity to increase coverage every three years with no additional underwriting, as long as the participant is not in claim status and has not declined two future purchase opportunities in a row. The premium will go up each time the person purchases additional coverage, and that increase will take into account not only more coverage, but also the person's increased age.

More information about LTC insurance, including information about premiums, benefits, limitations and exclusions, is available through these resources:
* Webinar: April 11. 2-3 p.m. (EDT) / 1-2 p.m. (CDT). Go to www.purdue.edu/hr/Benefits/ltcsessions.html for information on how to join the webinar.

* Genworth website: www.genworth.com/groupltc (group ID = Purdue, access code = groupltc)
Includes user-friendly online enrollment, plus tools to weigh costs and options.

* Genworth Life phone assistance: 800-416-3624
Provides customer service staff to answer questions. Also, those who don't want to enroll online may call this number to request a paper enrollment application.

* Purdue Benefits website: www.purdue.edu/benefits
Offers information about options and who's eligible for coverage. Also provides the full meeting and webinar schedule and frequently asked questions.

Long term care insurance provides coverage when a person needs substantial assistance with two or more "activities of daily living" or ADLs. These include things such as eating, dressing and moving from a bed to a chair. The person may receive care in his or her own home or at a facility, such as an assisted living residence or a nursing home.

Genworth Life Insurance Company underwrites Purdue's long term care insurance benefit.